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Thursday, October 25, 2012

Apple Inc. (NASDAQ:AAPL) Earnings: What To Expect? Here We Go

It has been a busy week
for Apple Inc.(NASDAQ:AAPL). Releasing the new iPad and a refreshing a few more
product lines and they are not yet done. The company is reporting its quarterly
earnings on Thursday and analysts will be closely monitoring the sales figures
for the iPad and iPhone.

Analysts are anticipating
a solid, not fabulous, quarter for the company. The consensus on Apple earnings
is that the company will record around $36.6 billion revenue and at least 25
million in iPhone sales.

As far as iPad sales
are concerned, a number of analysts have reduced their estimates after Tim
Cook, Apple’s Chief Executive gave a small preview of earnings call on Thursday
at announcement of the iPad mini on Tuesday.

Cook said that Apple
has sold off 100 million iPads two weeks back pointing out that sales may be
lesser than analysts had initially expected.

In a note forwarded to
investors after the event for iPad, Shaw Wu, an analyst at Sterne Agee reduced
his estimate for iPad shipments to 15.8 million units to 16.5 million units. Before
the event, other estimates for the iPad have been higher, in some cases, it has
been as high as 18 million.

Wu pointed out that the
lower sales were also due to the lower production while the company has used
resources to ramping production for the iPad mini. Customer expectation for the
smaller iPad may also have affected iPad sales, as rumored before the official
Tuesday launch.

Apple watchdogs will
also be keeping a watch on if Apple would expose the number of iPhone 5 units
it has sold till date.

It will be exciting to
see if Apple can join Facebook as the only major tech company to exceed
expectations for the quarter.

The company’s share passed
the $700 mark last month but has plunged since then. Shares of AAPL are now down 1%.